Trust Deed Pros & Cons

A Trust Deed can be a great way of becoming debt free, as you make a set monthly payment for a set period, then your remaining debt will be written off.

Before you enter into any financial decision, you need to be aware of any associated implications, as well as the benefits. IVAs provide you a summary below, but for more information please call our specialist advisors on 0800 048 1768. 

Trust Deed Pros:

• Debt free in 36 months.
• One low monthly payment.
• Interest and charges are automatically frozen.
• No more contact with your creditors, we will deal with any contact on your behalf.
• Avoid the stigmas of bankruptcy.
• Still remain self-employed and hold certain public offices.

Trust Deed Cons:

• Creditors must agree to the Trust Deed before it can go ahead.
• It will adversely affect your credit rating.
• You will not be allowed to borrow money during the period of your Trust Deed.
• You cannot be a director of a limited company
• Failing to keep up repayments means that your assets will be at risk, and bankruptcy proceedings can start against you.